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Vote for me and recieve your fre | Dragons den question? |
Lets say a dragon gave an investment of £100,000 for 10%, what does this mean i.e. what does that 10% enable the dragon to have ?
Thanks |
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crosbie
 |
My understanding is that he/she would expect 10% of any profits and if the business is sold, would get 10% of the amount it was sold for. |
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raysor
 |
They would own 10% of your company. Not a lot really . It means they have an interest , good PR for the program, and they might get their money back or more in the future. |
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Lisa
|
10% of the profit?? |
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tmore1
 |
It means that, he or she owns ten percent of your company and that you value your company at 1000,000 pounds. It must be damn good business though for a dragon to want to invest that amount.
what the dragon will not have have is power to make any major influential decision given that you own 90% of the company something that after watching them I doubt.
Another way of thinking about it is that they give you that amount as a loan, and they get ten percent as interest payment and get a sit on the board of your company because they like seeing their money work and that is the only guarantee that their money will be paid back.
Well good luck with them!! |
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General Devious
|
10% of the business he is investing in |
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Drop the phone
 |
10% of the shares, so basically he or she would own one tenth of the company. |
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Matt B
|
It means that they own 10% of the company.
What this enables is really two things:-
1. If the company is sold they would be entitled to 10% of the sale proceeds.
2. When dividends are paid out of profits at the end of the year they will get 10% of the total payout.
This is broadly speaking but is the general idea.
Hope this helps. |
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siobh_murphy
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Id say its %10 of the company and end of year profits |
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